Silver markets initially tried to rally during the trading session on Wednesday but continue to see a lot of selling pressure. The $20 level above is a major barrier that traders are trying to overcome, so if they can in fact do so, it is likely that we will see this market explode to the upside. In the short term, I think it is only a matter of time before the breakout happens, but we may get the occasional pullback. I think the $19 level underneath will be supportive, and of course the 50 day EMA getting close to the $18 level also bodes well for those looking to buy at lower levels.
SILVER Video 16.07.20
The US dollar has been pummeled as of late, and that is a huge portion of why silver has been rallying. However, silver also has an industrial component attached to it as well, and as long as there is a lack of industrial demand, silver is going to struggle. It is likely that we will get a lot of “push pull” in this market, and silver of course will play second fiddle to the gold markets.
However, if the market does break above the $20 level, the last couple of times we have seen that happen the market has raised towards the $50 level. In the short term I think we are likely to see pullbacks, but I look at those as buying opportunities as I have no reason whatsoever to think that the precious metals markets are going to fall apart anytime soon. Keep your position size small, as the market has been so volatile.
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This article was originally posted on FX Empire
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